Canadian Mining Journal

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URANIUM: Eco Ridge review raises production of REO, U3O8

ONTARIO – Pele Mountain Resources of Toronto has updated the preliminary economic assessment of its Eco Ridge rare earths and uranium project in Elliot Lake, raising output estimates for both products. Rare earth oxides (REO) would total...



ONTARIO – Pele Mountain Resources of Toronto has updated the preliminary economic assessment of its Eco Ridge rare earths and uranium project in Elliot Lake, raising output estimates for both products. Rare earth oxides (REO) would total 141.6 million lb, up 46%, over the life of the mine. Uranium oxide will total 42.6 million lb, a 55% increase.

After review and taking into account a 30% decrease in REO prices, the pre-tax net present value (10%) of Eco Ridge remains unchanged at $1.02 billion. About 52% of the project revenue will come from REO, and the uranium revenue is forecast to exceed operating costs for the first five years. Sustaining capital will go up by $33 million due to a longer mine life.

Pele Mountain says pre-production capital needs will be $563 million (including a $108 million contingency) for a 9,000-t/d operation. Average operating unit costs will be $72.12 per tonne, net of revenue.

For additional operational and financial metrics, please click here: Table 1A-Economic Review Operational Metrics and Table 1B-Economic Review Financial Metrics.